Commentary:

Stocks ended the day mixed on light trade. The market was down modestly in the morning session but recovered in the afternoon to close near break even. On relatively quiet day the small-cap Russell 2000 slid 0.4% as the Dow Jones Industrial Average fell 0.3%. The S&P 500 closed just over 0.1% lower while the S&P MidCap 400 ended the day flat. The Nasdaq was the only index that closed in the green as it tacked on 0.2% yesterday.

Market Internals were mixed on Thursday. Volume was lower on both exchanges. The Nasdaq saw turnover drop by almost 15% while it fell just over 10% on the Big Board yesterday. Declining volume was higher than advancing volume by 1.2 to 1 on the NYSE. However, advancing volume outpaced declining volume on the Nasdaq by a factor of 1.3 to 1. Thursday’s lackluster internals suggest that institutions were not actively involved in the session.

The PowerShares DB Crude Oil Double Short ETF (DTO) has been consolidating above its 20-day EMA since breaking out on May 5th. Yesterday DTO attempted to move to higher ground but was met with resistance and returned to the trading range. Should this ETF continue to consolidate at the current level, a move back above yesterday’s high of $48.77 could provide a buying opportunity. We are following this setup closely for a potential long entry in this inverse ETF.

Over the past two weeks the SPDR Gold Trust ETF (GLD) has been maintaining support along its 20-day EMA. Yesterday, GLD undercut its three day low, kissed off the 20-day EMA and quickly returned to the trading range. A volume fueled move back above yesterday’s high near $150.45 could provide a buy trigger for GLD.

Following two sessions of whipsaw trading, Thursday’s action was uneventful. We remain concerned over the market’s ability to hold support at the current levels and continue to suggest caution on the long side of the market.

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Today’s Watchlist:

There are no new official setups for today. As always, we will send an intraday alert if any new trades are made.

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Daily Performance Report:

Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 Wagner Daily model account size. Changes to open positions since the previous report are listed in red text below. Please review the Wagner Daily Subscriber Guide for important, automatic rules on trigger and stop prices

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Notes:

• We moved the stop in UUP down a few cents to give it a bit of wiggle room on the open.
• Reminder to subscribers – Intraday Trade Alerts to your e-mail and/or mobile phone are normally only sent to indicate a CHANGE to the pre-market plan that is detailed in each morning’s Wagner Daily. We sometimes send a courtesy alert just to confirm action that was already detailed in the pre-market newsletter, but this is not always the case. If no alert is received to the contrary, one should always assume we’re honoring all stops and trigger prices listed in each morning’s Wagner Daily. But whenever CHANGES to the pre-market stops or trigger prices are necessary, alerts are sent on an AS-NEEDED basis. Just a reminder of the purpose of Intraday Trade Alerts.
• For those of you whose ISPs occasionally deliver your e-mail with a delay, make sure you’re signed up to receive our free text message alerts sent to your mobile phone. This provides a great way to have redundancy on all Intraday Trade Alerts. Send your request to support@morpheustrading.com if not already set up for this value-added feature we provide to subscribers.

Edited by Deron Wagner,
MTG Founder and
Head Trader